Broker vs Advisor Sold RILAs: EDU #2527

The Retirement and IRA Show

Jim Saulnier, CFP® & Chris Stein, CFP®

Business, Investing

4.3 • 730 Ratings

🗓️ 2 July 2025

⏱️ 77 minutes

🔗️ Recording | iTunes | RSS

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Summary

Chris’s Summary:
Jim and I examine broker vs advisor sold RILAs using real cap rate comparisons from 2024 to highlight how identical contracts can offer different outcomes. We explain how six-year outcome periods work, what locking in gains actually does, and when fees can reduce returns more than commissions. This episode is less about product bias and more about understanding the trade-offs between access, structure, and transparency in how these annuities are priced and delivered.

Jim’s “Pithy” Summary:
Chris and I return to RILAs because, well, June wasn’t enough! We had more to say—especially about the quirks of six-year outcome periods and how they affect investor expectations. A listener email pointed out that clients often get emotionally attached to growing RILA balances, forgetting that those numbers aren’t locked in until the full term ends. That’s especially true with longer terms like six years, where market swings can reverse paper gains. We explain how this can lead to misunderstandings about what’s really protected—and when.

We also dig into the mechanics of locking in gains early. Some RILAs let you reset into a new term right away, while others force you into a cash-style holding account until the original term ends. That difference can make or break your returns. And if you’re thinking “buffered ETFs already do this,” you’re right—we talk about that too.

But the real highlight today is the cap rate comparison between broker vs advisor sold RILAs. Same insurance company. Same date. Same indexes. And yet, in multiple examples, the commission-based version offered meaningfully better cap rates—even after accounting for advisor fees. In one case, the broker version had a 60% cap while the advisor version capped at 30%. So much for the narrative that fee-only automatically means better. It’s a great reminder that both commissions and fees are just compensation structures—and neither tells you whether a product is actually better for the client.

The post Broker vs Advisor Sold RILAs: EDU #2527 appeared first on The Retirement and IRA Show.

Transcript

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0:00.0	The retirement and IRA show represents the words and views of the show hosts exclusively and should not be construed as investment legal or tax advice.
0:07.0	All information is believed to be from reliable sources. However, we make no representation as to its completeness or accuracy.
0:12.1	All economic and performance information is historical in nature and is not indicative of any future results.
0:16.5	Any indices mentioned on the show are unmanaged and cannot be invested indirectly.
0:20.0	Diversification and asset allocation strategies do not assure profit or protect against loss.
0:23.8	Never make any investment or financial decisions based on information offered on this show without first consulting your financial legal or tax advisor.
0:29.7	Financial planning services offered through Jim Solnior and Associates LLC, a registered investment advisor.
0:47.1	This is the retirement and IRA show coming to you from beautiful Northern Colorado.
0:52.8	Join us as certified financial planner Jim Sonier, as well as Colorado State University Finance Instructor and certified financial planner Chris Stein, teach you about IRAs,
0:58.2	borrow-in-case, annuities, Social Security, pension plans, and estate planning in a fun and enjoyable show.
1:05.4	Whether you are listening live in Colorado or streaming from their website or iTunes podcast,
1:10.7	Jim and Chris want you to know that
1:12.4	they're available to help you plan for your retirement. Just visit their website at Jimhelps.com.
1:18.5	That's Jim H-E-L-P-S dot com and click the Meet the Team button on the homepage. Now here's Jim
1:25.7	and Chris with today's show.
1:30.9	Well, hello and welcome to the Retirement and IRA show EDU edition for this week. So this is going to be the first show in
1:38.1	July of 2025. So we have formally exited June. That's what comes after June is July, for those of you
1:48.4	not aware, but June is National Annuity Awareness Month. So we had focused shows on
1:54.9	annuities. Well, we didn't quite get through everything we wanted to talk about. So we are going to do
1:59.8	a little bit more
2:01.5	annuity talk, excuse me, in July here. We're not going to do every show as annuities. We're not
2:08.1	going to make July honorary annuity awareness month. But we do have a few other things to talk about.
	...

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